Commercial Foreclosures Increase 17 Percent from Last Month and 97 Percent from Last Year; States with the Most Commercial Foreclosures in January 2024 Included California, New York and Texas
IRVINE, Calif., Feb. 22, 2024 /PRNewswire/ — ATTOM, a leading curator of land, property, and real estate data, today released a special report on U.S. Commercial Foreclosures. The report reveals a significant climb in commercial foreclosures over the years, from a low of 141 in May 2020 to the current figure of 635 in January 2024. This represents a steady increase throughout the period.
A Decade of Data Driven Decisions
ATTOM’s analysis began in January 2014, a time when the nation was emerging from the shadows of economic uncertainty, with commercial foreclosures at 740 nationwide. Over the next decade, ATTOM tracked fluctuations, witnessing the highest spike in October 2014 with 889 foreclosures, indicating the ongoing market corrections and adjustments.
However, the trajectory wasn’t a steady incline. In the face of challenges such as the COVID-19 pandemic and changing economic policies, the market displayed remarkable adaptability. While the pandemic saw an initial rise in foreclosures, the subsequent months showed a notable stabilization as businesses adapted to new market realities.
In May 2020, the United States marked a significant low in commercial foreclosures, reaching 141 commercial foreclosures, reflecting the immediate impacts of the COVID-19 pandemic and the swift response measures that followed, including moratoriums and financial aid. By January 2024, commercial foreclosures had surged to 635, a stark contrast to the 2020 low. The 97% year-over-year increase signals a revitalizing market that is navigating through the long-term economic shifts following a global event, adapting with resilience and strategic adjustments to new commercial realities.
“This uptick signifies not just a return to pre-pandemic activity levels but also underscores the ongoing adjustments within the commercial real estate sector as it navigates through a landscape transformed by evolving business practices and consumer behaviors,” said Rob Barber, CEO at ATTOM.
State-by-State Commercial Foreclosure Review
California, as a bellwether state, began the decade with 209 foreclosures in January 2014. Though it experienced a decrease in the following months, the foreclosure numbers saw fluctuations reflecting the state’s dynamic economic climate. By January 2024, California had the highest number of commercial foreclosures for the month, at 181. This was a 72 percent increase from last month and a 174 percent increase from last year.
New York, Texas, New Jersey, and Florida also showed significant variance over the decade, with each state’s unique economic composition influencing the foreclosure rates. For instance, New York had a total of 59 commercial foreclosures in January 2024, a 12 percent decrease from last month and a 12 percent decrease from a year ago. Whereas Texas saw a 17 percent increase from last month and a 143 percent increase from last year. New Jersey saw a 38 percent increase from last month and a 157 percent increase from last year. Finally, Florida saw a 18 percent increase from last month and a 42 percent increase from last year.
Report Methodology
ATTOM’s U.S. Commercial Foreclosure Report provides a count of the total number of commercial properties with at least one foreclosure filing entered into the ATTOM Data Warehouse during the month. ATTOM’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank).
About ATTOM
ATTOM provides premium property data to power products that improve transparency, innovation, efficiency, and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation’s population. A rigorous data management process involving more than 20 steps validates, standardizes, and enhances the real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 30TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include ATTOM Cloud, bulk file licenses, property data APIs, real estate market trends, property navigator and more. Also, introducing our newest innovative solution, making property data more readily accessible and optimized for AI applications– AI-Ready Solutions.
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